The Drag Along Right is a mechanism whose purpose is the protection of the majority shareholders of the Company and it establishes itself as the Tag Along Right counterpart, which we have previously reviewed, and which aims to safeguard the minority shareholders interests.

The Tag Along Right, as other clauses and agreements we have previously reviewed in this blog, has the purpose to regulate the withdraw of the partners from the Company. This right is established particularly with the aim to grant protection to minority partners and/or shareholders.

When setting up for a new venture it becomes necessary to take some safeguard measures, be them between Founders or between these and workers. In previous posts we reviewed some of these contractual arrangements, such as the Non-Disclosure or Non-Compete Agreements. These contracts are intended to protect a Company’s intangible asset: Information. These assets may… Read More Vesting Clause Application